06300794 - ESG Risks

Introduction to the concept of sustainable development and corporate social responsibility.
Providing the main tools for steering overall performance, ESG risks and an operational understanding of a responsible management system. 
Experimenting with this knowledge using case studies carried out in a team.

Estimation of private study (outside of contact hours): 5-10 hours

DIMENSION OF SOCIAL RESPONSIBILITY

The participants are encouraged to act and consult in accordance with the ethical standards and norms defined by the IAE Lyon (Charte de Responsabilité Sociétale et des engagements des membres de la communauté de l'iaelyon).
The ESG Risks Course is based on an extensive experience of sustainable business practices at local, sectoral and global level in France and abroad.

TARGETED KNOWLEDGE AND SKILLS 

• Identify and understand the challenges of sustainable development at global level (Sustainable Development Goals) and the ESG (Environment, Social, Governance) dimensions of a company.
• Examine a company's situation in terms of sustainability (Strategy - Operating model - Business model - Risks).
• Mapping a company's stakeholders and understanding how to consult them.
• Understanding and questioning the company's materiality matrix and its risks matrix.
• Understanding and questioning an overall performance dashboard.
• Apply the knowledge, attitudes, and tools of responsible management.

COURSE OUTLINE

Part I - Introduction to Sustainable Development and CSR (2 hrs)
1) What is Sustainable Development?
Definitions and historical background
Main international and European organisations
Sustainable Development Goals

2) What is Corporate Social Responsibility?
Definitions and historical background
ISO 26000: 7 principles, 7 key domains
CSR auditing: example of “Responsibility Europe” (France – Luxembourg – Suisse)

Part II - Operational approach to a company's overall performance (8 hrs) 
1) What is overall performance?
Definitions of financial performance
Definitions of extra-financial performance

2) Overall performance management system
Plan (concepts: Vision – Purpose – Strategy – Targets – Regulations)
Do (concepts: Business model – Operating model – Actions plan – Steering) 
Check (concepts: Dashboard - Risk Management – Products checks – Internal/external audit – Rating agencies)
Act (concepts: Integrated Reporting – Stakeholders engagement – Total Impact Measurement)

3) Best practices in managing overall performance.
SWOT ESG (Vision – Purpose – Strategy – Targets – Regulations) 
Stakeholder mapping and engagement
Materiality matrix
Risks matrix (Reputation, Operations, Legal, Financial) – ACAT approach (Avoid, Control, Accept, Transfer)
Examples ESG dashboards (Ref. GRI indicators)

Part III - Responsible People Management (2 hrs)

1) Focus on the "Social" aspect of ESG.

2) Key managerial positions: consistency, coherence, cohesion

3) Examples of responsible management initiatives: 
People assessment: upward & peer feed-back. 
People development: pro bono activities.
Diversity: gender equality survey.

Part IV – Case study coaching session (7 hours)
Review of the 3 components of "ESG" (topics & standards)
Presentation by teams of their teamwork & debriefing

PRESCRIBED TEXTS AND PUBLICATIONS

ISO 26000 (www.iso.org)

EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE

Eco-Economy, Lester R.Brown, Editions du Seuil, 2003
Managing transitions, William Bridges, Third Edition, 2009
Doughnut Economics, Seven ways to think like a 21st century economist, Kate Raworth, 2017
The Journey of Humanity, The origins of Wealth and Inequalities, Oded Galor, 2022

Individual grade
Multiple Choice Questionnaire, 1h

Other grade(s)
Teamwork Case study (+ continuous involvement)
5/10h in a group

Weight : 50% / 50%

TEACHING METHODS

The course is based on the principle of sharing a return on experience and requires interactions.
Academic course and case studies.

NATURE OF MATERIALS

All the content of the course is presented with the support of slides.

TEACHING INNOVATIONS AND USE OF TECHNOLOGY

Video are used to introduce or illustrate methods, to stimulate the participation of the students, to seek for their opinions, to brainstorm and assess their knowledge.
The delivery through teamworking of a Case study is supported by a collective coaching session.
Optional: Contribute to the Sulitest.org collective initiative to measure and improve knowledge about sustainability. –>  To be subscribed by the IAE

PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS

Although no pre-requisite is needed to attend to this course, the students are supposed to continuously inform themselves on various topics concerning various types of business and their related ESG issues at a local, sectoral, and global level. 

ADVISED PRIOR READING

Consulting either generalist or specialized media will allow the students to find out some typical situations of ESG risks to which every company might be exposed. Some examples of sources/ websites: World Business Council for Sustainable Development, IPCC, Harvard Business Review, European Commission, Financial Times, Reuters, Bloomberg, etc.